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skelet666 [1.2K]
3 years ago
11

The zero coupon bonds of Mark Enterprises have a market price of $394.47, a face value of $1,000, and a yield to maturity of 6.8

7 percent based on semiannual compounding. How many years is it until this bond matures? a. 10.49 years b. 13.77 years c. 12.64 years d. 11.08 years e. 15.42 years
Business
1 answer:
almond37 [142]3 years ago
7 0

Answer:

13.77 years

Explanation:

The maturity period is the period taken for the Bonds' Market Price equals its Face Value.

Calculation of the maturity period :

PV = - $394.47

PMT = $0

YTM = 6.87 %

P/YR = 2

FV = $1,000

N = ?

Using a financial calculator to input the values as above, the number of periods interest is accrued on the bond (N) is 27.54 thus the number of years will be 13.77 (27.54 ÷ 12) .

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Answer:

Explanation:

Free brainliest to the first who answers and 100 points!!!!! also a thanks and a five star

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3 years ago
Suppose the economy is in a recession. The economy needs to expand by at least $350 billion, and the marginal propensity to cons
MissTica

Answer:

$140

Explanation:

Calculation for What is the least amount the government can spend to overcome the $350 billion gap

First step is to find the Multiplier using this formula

Multiplier=1(1-Marginal propensity)

Let plug in the formula

Multiplier=1/(1-0.6)

Multiplier=1/0.4

Multiplier=2.5

Now let calculate the least amount the government can spend using this formula

Least amount=Gap/Multiplier

Let plug in the formula

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Least amount=$140

Therefore the least amount the government can spend to overcome the $350 billion gap is $140

4 0
3 years ago
cientists have developed a bacteria that they believe will lower the freezing point of agricultural products. This innovation co
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Answer:

equilibrium price would fall and equilibrium quantity would increase

Explanation:

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As a result of the increase in supply, there would be an excess of supply over demand equilibrium price would fall and quantity would increase

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5 0
3 years ago
Suppose you know a company's stock currently sells for $90 per share and the required return on the stock is 8 percent. You also
maks197457 [2]

Answer: $3.46

Explanation:

Given the following :

Current share price (P0) = $90 per share

Required return on stock= 8%

total return on the stock is evenly divided between a capital gains yield and a dividend yield ;

Therefore, Required return on stock= 8% ;

4% capital gain yield + 4% Dividend yield = 8%

Growth rate = 4% = 4/ 100 = 0.04

D1 = D0(1 + g)

D1 = value of next year's Dividend

D0 = current Dividend yield

g = Constant growth rate

D1 = current stock price * g

D1 = 90 * 0.04 = 3.6

D1 = D0(1 + g)

D0 = D1 / (1+g)

D0 = 3.6 / (1+ 0.04)

D0 = 3.6 / 1.04

D0 = $3.46

8 0
4 years ago
According to the _________ concept, a firm must (1) find out what customers want and provide it, (2) make sure everyone in the o
In-s [12.5K]

Answer: marketing

                                     

Explanation:  In simple words, marketing refers to the set of activities that are performed by an organisation with the objective promoting the products that they are offering in the market.

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3 years ago
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